The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

3.11.13 Consequences for not meeting mutual obligation requirements - targeted compliance framework


From 1 July 2018, the arrangements under the targeted compliance framework set out in SS(Admin)Act Division 3AA apply to participation payment recipients in all employment services programs who are not declared program participants (i.e. CDP participants).

Social security law defines 'participation payments' as:

  • jobseeker payment
  • YA, unless the recipient is a full-time student or a new apprentice
  • PP, if the recipient is subject to participation requirements, and
  • SpB, if the person is a NVH.

In this section of the Guide, people receiving participation payments are referred to as job seekers. CDP participants remain subject to the job seeker compliance framework (3.11.14).

Act reference: SSAct section 23(1)-'nominated visa holder'

SS(Admin)Act Schedule 1 clause 1(1)-'participation payment'

Social Security (Declared Program Participant) Determination 2018

Objectives of the targeted compliance framework

The purpose of the targeted compliance framework is to encourage job seekers to meet their mutual obligation requirements. That is, to do all that they can to find work and participate in employment services and other activities designed to improve their job prospects. A key aim of the targeted compliance framework is that job seekers should remain connected with employment services, or be reconnected as quickly as possible if they fail to meet a requirement. However, job seekers who have a good reason for not meeting their requirements should not be penalised.

Under the targeted compliance framework, payment suspension will be used to encourage re-engagement by job seekers who miss the occasional requirement but are generally compliant. Job seekers who persistently and deliberately fail to meet their requirements will face stronger penalties, with graduated loss of income support payments culminating in payment cancellation for the most non-compliant job seekers.

Act reference: SS(Admin)Act section 42AA Simplified outline of this Division

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